Friday, 3 March 2017

We value respect and honesty in relationships, team work and accountability. We work against corruption in all its forms, including extortion and bribery by supporting the Extractive Industry Transparency Initiative (EITI).

Golden Star supports the social and economic development of Ghana through Government payments including royalties and ground rent, direct and indirect employment generation, flow on through supply and services contracts, corporate social responsibility initiatives such as the Golden Star Development Foundation and Golden Star Oil Palm Plantation (each funded with US$1 per ounce of gold produced), and other direct mine funded initiatives.To ensure that the contributions of the extractive sector reach the intended beneficiaries for sustainable benefits, the industry has embraced the Extractive Industry Transparency Initiative (EITI). Contributing to Ghana’s GrowthGolden Star’s annual Corporate Responsibility Reports disclose the payments we make to the Government of Ghana including royalties, fees, permit, licenses, SSNIT, value added tax, pay as you earn taxes, import duties, withholding tax and the stabilization levy.

Augustina Yenzu, a member of the Golden Star community affairs team, reads our Corporate Responsibility Report

In 2016 Golden Star paid over US$36 million to the Government of Ghana. For the life of our operations to date, Golden Star has paid in excess of US$324 million in Government payments.

In Ghana, the payment of royalties to the Government is distributed in a legislated way:•80% - Government Consolidated Fund •10% - Mineral Development Fund (intended for mining community projects and to support mining sector institutions)•The Office of the Administrator of Stool Lands (OASL) receives the remainder, split amongst the following groups:o1% - Administrator of Stool Lands o4.95% - District Assemblies where the gold was producedo2.25% - Stools o1.8% - Traditional Councils Of Golden Star’s royalty payments, approximately US$1.18 million is expected to be disbursed to the OASL, Districts, Stools and Traditional Councils. Since 2011 the total amount expected to disburse from Golden Star royalty payments to these groups is in excess of US$12 million: a significant contribution to support the social and economic development of our host communities.

Leading The WayGhana led the way amongst African nations by being the first country to sign on to the Extractive Industries Transparency Initiative (EITI) in 2009. In 2016, Ghana won the Global Extractive Industry Transparency Award for strict implementation of recommendations leading to far-reaching policy, regulatory, and institutional reforms in its mining, oil and gas sectors.The Ghana EITI (GHEITI) reports that the sector contributed to 64% of Ghana’s total export value in 2014 – a whopping US$4.3 billion; 10% of gross domestic product (GDP); and 17.5% of Government revenue!What’s more, the latest EITI reporting shows that companies, such as Golden Star, are meeting local content and local procurement mandates. At Golden Star, over half of our workforce hails from our host communities, 66% are from our host region and 99% are Ghanaian.

Supporting the EITI in our Host Communities

Mr. Ben Ayree of the Ministry of Lands and Natural Resources addresses the forum.

In February, Golden Star participated in a multi-stakeholder disclosure workshop hosted by the West Africa Governance and Economic Sustainability in Extractive Areas (WAGES) project team, which is jointly implemented by the World University Service of Canada (WUSC) and the Centre d’étude et de Coopération Internationale (CECI).The workshop brought together members of the District Assemblies, Traditional leaders, elected leaders, extractive companies, artisanal and small scale mining groups, NGOs, CSOs and other stakeholders. The program was supported by representatives of the Ministry of Lands and Natural Resources, Ministry of Finance and Ghana Revenue Authority, as well as members of the GHEITI team.This is what participants had to say about the EITI Workshop:Robert Gyamfi, Golden Star Resources, Community Relations & Social Responsibility Manager

“The workshop was very revealing for me and my community participants. It was recognized that Golden Star complies with making its royalty payments but it was suggested that the utilization of these payments by the Prestea Huni Valley District Assembly needs to be reviewed. I am convinced that our current corporate responsibility programs together with the proposed utilization guidelines for mineral royalties will have a further positive impact on our business and in the communities in which we operate”.Akwasi Owusu-Bi, Local Governance Specialist, WAGES

“Working in partnership with communities, local government, mining companies, and other stakeholders, the WAGES project aims to improve local governance and maximize the socio-economic benefits from extractive resource investment in West Africa. The forum was timely as information shared engendered a conscientious effort to encourage community policing of mineral revenue disbursement. Part of the strategy was also to develop a new type of thinking and awareness within the civil society that breeds responsible social engagements and participation of issues that results in positive developmental activities. That is the way to go.”Godwin Amoakohene, Entrepreneurship Officer/Business Advisor, Business Advisory Centre “I found the forum to be very participatory and informative. Together with the community members we now have insight into the accrual system used for mineral royalty funds and how these revenues are utilised. I also now know that, besides the minerals funds, ground rent has been added to the stream of District Revenue sources. As an Enterprise Developer, I was particularly keen to see that more of the mineral funds be used to promote Local Economic Development activities and create alternative employment opportunities in the communities. This will help alleviate pressure on the mining companies to provide employment and social amenities.”The Future for EITIThe next phase of the roll out of the EITI requires Governments and companies to commence disclosure on beneficial ownership. The program will be a land-mark milestone in increasing transparency for reducing conflict of interest in the sector.

If you'd like to find out more about Golden Star and its approach to CSR, please visit www.gsr.com/responsibility.